Perhaps the most challenging part of starting a small business
is covering all your legal bases. "The law increasingly
affects every aspect of small-business operation, from
relationships with landlords, customers and suppliers to dealings
with government agencies over taxes, licenses and zoning,"
says Fred S. Steingold, an Ann Arbor, Michigan, attorney and the
author of Legal Guide for Starting & Running a Small
Business (Nolo Press, two volumes for $24.95 each, 800-992-6656
or http://www.nolo.com

The best way to ensure you've got everything covered is to
hire an attorney with small-business expertise who can give you
advice in these key areas:

Business structure. Will you form a sole proprietorship,
partnership, corporation or limited liability company? Do you know
the advantages and limitations of each?

Written documents. Does your lease state who pays for
utilities, maintenance and repairs? Do you have an option to renew?
Can you sublet? Your leases and other written documents--purchase
agreements and employment contracts--should be drafted in clear,
precise language and spell out each party's expectations and
responsibilities.

Co-ownership agreements. What happens if your partner
wants out of the business? Do you have a buy-sell agreement to
purchase his or her interests? Does it contain a
"noncompete" clause so he or she can't open up a
similar business down the block?

Licenses and ordinances. Does your industry require you
to be bonded or insured? Will you need professional or product
liability insurance?

Employee relations. If you hire independent contractors,
do you know how to classify them so you're not penalized by the
IRS? Have you prepared an employee handbook outlining your
firm's policies and procedures? What about trade secrets you
want to protect?

Future planning. Have you drafted a will or trust to
protect your business assets and your firm's continuity in the
event you die or become disabled?

It's not practical, economical or even necessary to contact
a lawyer about every business decision you make that could have
legal ramifications. "Handle the most routine matters on your
own," says Steingold. For example, if you plan to run a
homebased business, you can check out zoning laws and land-use
restrictions on your own time to ensure your business complies. If
a relative wants security for the money he or she is lending you,
simply sign a promissory note, available at most stationery
stores.

Another option: Sign up for a prepaid legal plan. Often compared
to HMOs, these services give you access to a set amount of legal
services and consultation time for a monthly fee as low as $20.

Steingold also suggests educating yourself about basic legal
issues by studying books and software programs on how to start and
run a small business. These resources give you access to dozens of
standard legal forms that can be used as the basis for contracts
you want your lawyer to draft.

Says Steingold, "You'll be able to make most day-to-day
decisions on your own, then seek professional advice only when you
truly need it."

Cost And Effect

Discuss fees. Once you've found the right
lawyer, ask whether he or she charges an hourly rate or a fixed
fee. "If charges are by the hour, set a cap so you know the
maximum you'll be spending," suggests Fred S. Steingold,
an attorney in Ann Arbor, Michigan.

Do some footwork. Keep accurate records, do
preliminary research, and write out a draft of any agreement you
want your attorney to finalize.

Use paralegals. Ask your lawyer about using
paralegals for routine legal tasks like researching public records
and drafting documents. Their hourly rate could be half what your
attorney charges.

Educate yourself. Call special-interest
publishers Nolo Press (800-955-4775) or PSI Research/The Oasis
Press (800-228-2275) to obtain a catalog of legal books and
software programs for business owners. Also check into legal
seminars offered by your chamber of commerce, local business
association or university extension service. They can help you
learn the basics of legal issues affecting your business.

Healthy Returns

When you're out of town on business and can't get
to a health club, you can stay fit with a simple five-point program
offered by Bill Driskill, a personal fitness trainer and owner of
Total Body Fitness in Rocklin, California.

2. Stretch: Take two or three minutes every
hour to stretch your upper body, shoulders and neck. You can do a
simple routine while sitting at your desk.

3. Avoid sugar: The sweet rolls and cookies
often found at conferences may taste great, but the sugar they
contain provides only a short-term energy boost. Sweets act as a
natural depressant in the long run.

4. Limit caffeine and alcohol: Coffee, tea,
wine and alcoholic drinks will dehydrate you and limit your ability
to focus.

5. Drink water: Driskill says the amount of
water you drink each day should equal, in ounces, one-half your
body weight. If you weigh 140 pounds, that's 70 ounces, or
seven 10-ounce glasses, each day. So take a water bottle with you
and fill it--and drink it--regularly.

One Of A Kind

When you only have one employee, keeping him or her motivated
presents special challenges. Your employee has no one with whom to
exchange ideas, discuss work problems or share a coffee break. Nor
does he or she enjoy the momentum working with others can
bring.

The good news: One doesn't have to be the loneliest
number--not if you make a concerted effort to keep your solo
employee both energized and happy. Bernard Liebowitz, a
management consultant and organizational psychologist in Chicago,
offers this five-step plan to keep your employee motivated:

1.Ask for input. "When
employees feel their concerns are being addressed and their ideas
respected, you have a highly motivated employee," says
Liebowitz.

2.Be upfront. Employees become
bored and critical when they don't know what's going on and
feel left out. Keep your employee abreast of what he or she needs
to know about your company. When you ask your employee for advice,
tell him or her if you end up using it. The next time you ask for
an opinion, your employee will be more eager to give it.

3.Be accommodating. When your
business relies on one employee, you might have to make special
allowances, such as giving him or her time off to attend a class or
take a child to a doctor's appointment. Always try to be
flexible.

4.Set the tone. Establish the
ground rules from the start so your employee is aware of your
boundaries. Make sure your employee knows how much authority or
responsibility he or she has and clearly understands your
expectations.

5.Always reward achievement.
When your employee has an idea that helps you sell to a fussy
client or resolve a vendor problem, it pays to give him or her
praise, thanks and rewards. Before long, your employee will become
your strongest ally.

By using Liebowitz' five-step plan, you'll have a more
loyal and productive employee--and create a happier work
environment for both of you.